USAA Insurance

Yes, USAA is an “A++” rated insurance company, according to financial analysis by AM Best. AM Best's “A++” designation means that USAA is in a superior position to pay out claims to customers. 

Car insurance companies are rated on a variety of metrics in addition to financial strength, including customer satisfaction and claims processes. Below, you can find a few additional ratings for USAA that speak to its overall reputation.

Notable USAA Ratings

• AM Best: A++
• WalletHub Editors: 3.3/5
• JD Power: 4.4/5
• NAIC: 2.27

To learn more, check out WalletHub's review of USAA.

USAA Car Insurance Rates vs. Popular Competitors

Note: Rates are an approximation based on a 45-year-old driver in California. Actual rates will vary. For more information, check out the methodology section of our USAA car insurance review.

Other Factors That Make USAA Insurance Competitive

• USAA offers 15 auto insurance discounts.
• USAA offers 37 different types of insurance.
• USAA customer service representatives are available Monday-Friday 6 am - 10 pm, and Saturday 8 am - 8 pm CST.

To learn more, read WalletHub's complete review of USAA.

USAA is so cheap because the company is the largest insurer of the military community, and that volume allows USAA to offer more competitive rates. USAA has more than 6% of the total private-passenger insurance market, despite only offering coverage to service members. A minimum coverage policy from USAA costs an average of $53 per month, and USAA premiums can be made even cheaper by taking advantage of discounts such as paid-in-full discount and annual mileage discount. Plus, USAA rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.

Average Monthly Rates for USAA vs. Top Competitors

Note: Premiums are representative of a 45-year-old good driver in CA; individual premiums will vary.

USAA is especially cheap for young drivers in particular. That's because USAA has special savings opportunities for drivers in this category, such as discounts for students who maintain at least a B average.

Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though USAA is among the cheapest car insurance companies, the only way to confirm you've found the lowest price is to compare quotes from multiple companies.

To learn more, check out WalletHub's review of USAA and see USAA's full profile.

Full coverage car insurance from USAA costs $2,802 per year, on average, and is more expensive than a liability-only policy since it provides more coverage.

Cost of USAA Full Coverage by Driver's Age 

Common USAA Full Coverage Insurance Components

Liability insurance. Almost every state requires drivers to carry liability insurance, which includes property damage liability and bodily injury liability coverage. Liability insurance pays for others' expenses after an accident you are at fault for.

Collision and comprehensive insurance. Collision insurance covers the cost of fixing or replacing the policyholder's vehicle after an accident, regardless of who was at fault. Similarly, comprehensive insurance covers the policyholder's car if it's damaged by something besides an accident, like vandalism, a fire, or a natural disaster. Collision and comprehensive are not mandatory in any state, but they are usually required for leased and financed cars.

Uninsured/underinsured motorist coverage. This type of coverage protects you if you are involved in an accident with a driver who either does not have car insurance or does not have enough coverage. Uninsured/underinsured motorist insurance covers your expenses after an accident that should have been paid for by the at-fault driver's liability insurance. It will automatically be included in your full coverage policy if it is required in your state.

Personal injury protection/MedPay. Personal injury protection (PIP) insurance and MedPay coverage both cover medical expenses for you and your passengers after an accident, regardless of fault. Depending on your state, you may be required to carry one or the other.

Although these types of insurance are commonly included in a full coverage policy, what your specific policy includes will depend on your state. Full coverage is not the official name of any type of insurance, so be sure to clarify whether these types of insurance are included if you're purchasing a USAA policy.

When You Should Consider Full Coverage From USAA

A USAA full coverage policy is a good choice for drivers who don't want to pay for vehicle repairs out of pocket. If you are leasing or financing your car, you may be required to get full coverage.

To get a quote from USAA for a full coverage policy, you can call 800-531-8722. To learn more, check out WalletHub's guide to full coverage car insurance and our full review of USAA.

Note: Rates are an approximation based on a driver with full coverage and a clean driving record in California. Actual rates will vary.    

The exact amount that premiums go up after an accident depends on a few factors, including who was at fault, how much damage was caused, and the policyholder's driving and claims history. In general, at-fault accidents or severe accidents that lead to expensive insurance claims increase rates more than minor or not-at-fault wrecks. Repeat offenders also see relatively large rate hikes.

To learn more, check out WalletHub's complete review of USAA car insurance, as well as our guide to accident forgiveness.